Tenant's Trust Income Was Above Deregulation Threshold

Landlord applied for high-rent/high-income deregulation of rent-stabilized tenant's apartment in 2010. Tenant claimed that her relevant household income was less than $175,000 in both 2008 and 2009. But DTF records showed that tenant's income was greater than the deregulation threshold in both years. The DRA then ruled for landlord. Tenant appealed and lost. Tenant argued that she was over 90 years old, homebound, and that her only source of income was distributions made from a QTIP trust set up under her late husband's will over which she had no control. She also claimed that the 2008 and 2009 distributions were higher than those made in other years. Annual income for high-income deregulation purposes is "the federal adjusted gross income as reported on the New York State income tax return." There are no exceptions or exclusions for amounts received from non-routine distributions from testamentary trusts. The DHCR followed the law by using DTF information to match income information for tenant. The fact that tenant's income was below the deregulation threshold in years other than 2008 and 2009 didn't matter.

Kaplan: DHCR Adm. Rev. Docket No. BM410017RT (4/10/14) [4-pg. doc.]